IMAGE  EVALUATION 
TEST  TARGET  (MT-3) 


1.0 


1.1 


1.25 


Li  128 

mm 


2.5 
■  22 

I   1^    |2.0 

It       u 

tt«b 


w 


=^ 


Hiotograiiiic 

Sciences 

Ckjrporation 


23  WBT  MAIN  STRHT 

WnSTn,NY.  USM 

(7I«)I72-4SC3 


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<^<^ 

^ 


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CIHM/ICMH 

Microfiche 

Series. 


CIHJVl/ICMH 
Collection  de 
microfiches. 


Canadian  Institute  for  Historical  Microraproductions  /  Institut  Canadian  da  microraproductions  historiquas 


:V 


i«^ 


©1984 


Technical  and  Bibliographic  Notas/Notaa  tachniquaa  «t  Mbliographiquas 


Tha  Inatituta  haa  attamptad  to  ohtain  tha  baat 
original  copy  availabia  for  filming.  Faatur«a  of  thia 
copy  which  may  ba  bibliograpkiicaNy  uniqua, 
which  may  altar  any  of  tha  imagaa  in  tha 
raproduction,  or  which  may  aigniflcantly  changa 
tha  usual  mathod  of  filming,  ara  chacltaid  balow. 


□   Colourad  covara/ 
Couvarti^ra  da  couiaur 

I — I   Covarft  cSamagad/ 


D 


D 


n 


n 


D 


Couvartura  andommagAa 


Covara  raatorad  and/or  laminatad/ 
Couvartura  raataurte  at/ou  pMlllcuMa 


I — I   Covar  titia  miaaing/ 


La  titra  da  couvartura  manqua 


□   Colourad  maps/ 
Cartas  gAographiquaa  an  couiaur 


Colourafi  inic  (l.a.  othar  than  blua  or  blacic)/ 
Encra  d«  couiaur  (i.a.  autra  qua  blaua  ou  noira) 


□   Colourad  plataa  and/or  iliuatrationa/ 
Planchaa  at/ou  iliuatrationa  wn  couiaur 

□   Bound  with  otiiar  matarial/ 
Rati*  avac  d'autraa  documanta 


Tight  binding  may  cauaa  shadows  or  distortion 
along  intarior  margin/ 

La  r«  liura  aarrte  paut  causar  da  I'ombra  ou  da  la 
diatortion  la  Irng  da  la  marga  intAriaura 

Blank  laavaa  addad  during  raatoration  may 
appaar  within  tha  taxt.  Whanavar  poaaibia,  thaaa 
hava  baan  omittad  from  filming/ 
ii  aa  paut  qua  oartainaa  pagaa  trfanchaa  aJoutAaa 
lora  d'una  raatauration  apparalaaant  dana  la  taxta. 
maia,  loraqua  cala  Atait  poaaibia,  caa  pagaa  n'ont 
pas  4t4  filioAas. 

Additional  eommanta:/ 
Commantairaa  aupplAmantairaa: 


L'Inatitut  a  microf  Hm*  la  maillaur  axampiaira 
qu'il  iui  a  At4  poaaibia  da  sa  procurar.  Las  details 
da  eat  axampiaira  qui  aont  paut-ttra  uniquaa  du 
point  da  vua  Mbliographiqua,  qui  pauvant  modifier 
una  image  raproduite,  ou  qui  peuvent  exiger  une 
modification  dana  la  mAthoda  normale  da  fiimage 
aont  IndiquAa  ei'deaaoua. 


r~1  Colourad  pages/ 


iPagea  da  couifiur 

Pagaa  damaeed/ 
Pagaa  endo'nmagtea 

Pagaa  raatorad  and/oi 

Pagea  reataurtkaa  at/ou  peilicuMes 

Pagaa  diaeoloured,  stained  or  foxei 
Pagee  dAcolorAaa,  tachattes  ou  piquAes 

Peges  detached/ 
Pages  dAtechAes 

Showthroughy 
Transparence 

Quality  of  prin 

QuaUti  inAgala  de  I'impreaaion 

Inciudea  aupplementary  materii 
Comprend  du  matirfel  suppMmentaire 

Only  edition  available/ 
Seule  Mition  diaponibia 


r~1  Pagaa  damaeed/ 

pn   Pagaa  raatorad  and/or  laminated/ 

EPegea  diaeoloured,  stained  or  foxeci/ 
Pagea 

I     I  Pagea  detached/ 

rpi  Showthrough/ 

p~l  Quality  of  print  variaa/ 

pn  Inciudea  aupplementary  materiel/ 

I — I  Only  edition  available/ 


D 


Pagee  wholly  or  pertially  obacured  by  errata 
alipa,  tiaauea,  etc.,  hava  been  refiimed  to 
enaure  the  beat  poaaibia  image/ 
Lea  pagee  totalament  ou  partieltament 
obacurciea  par  (m  feuWet  d'jrrata.  une  pelure, 
etc  ont  *t4  fUmAea  i  nouveau  de  fa^on  A 
obtanir  la  malHeure  image  possible. 


1 

a 
1 

V 

d 
a 
b 
ri 
n 
n 


Thia  item  ia  filmed  at  the  reduction  ratio  checked  below/ 

Ce  document  eat  filmA  au  taux  de  rAduction  hfidlquA  d'deaaput. 


10X 

MX 

itx 

nx 

aix 

NX 

^ 

12X 

itx 

am 

MX 

»x 

»x 

■ 


Tht  copy  film«d  h«ra  has  lM«n  r«produe«d  thanks 
to  th«  o«Mr(Mhy  of: 

Library  of  tha  Public 
Arehlvas  of  Canada 


L'axampiaira  filmA  f ut  raproduit  grica  i  la 
0*n4rosit*  da: 

La  bibliotMqua  das  Arehlvas 
publiquas  du  Canada 


Tha  imagaa  appaarlnfi  hara  ara  tha  bast  quality 
poaaibia  aonaidarlng  tha  eondltion  and  laglbility 
of  tha  orlfllnai  copy  and  In  kaapino  wUh  tha 
filming  contract  spaolf loationa. 


Original  coplas  In  printad  papar  covara  ara  fUmad 
baginning  ¥vlth  tha  front  covar  and  anding  on 
tha  laat  paga  wdth  a  printad  or  IHustratad  Impras- 
sk>n,  or  tlw  back  covar  whan  approprlata.  AN 
othar  original  coplaa  ara  fNmad  baginning  on  tha 
first  paga  with  a  printad  or  IHustratad  impras- 
sion,  and  andIng  on  tha  laat  paga  with  a  printad 
or  iiluatratad  lmpraask>n. 


Las  Imagaa  suh/antas  ont  4t*  raproduitas  avac  la 
plus  grand  soin,  compta  tanu  da  la  condition  at 
da  la  nattat*  da  i'mamplaira  film*,  at  an 
conformM  avac  las  conditions  du  contrat  da 
filmaga. 

Laa  axamplairas  originsux  dont  Is  couvertura  an 
papiar  aat  imprim^a  sont  nimAs  an  commenpant 
par  la  pramiar  plat  at  an  tarminaiit  soit  par  la 
darnlira  paga  qui  somporta  una  amprainta 
d'Impraasion  ou  d'iHustrstlon,  soit  par  Is  sacond 
plat,  aakm  hi  cas.  Tous  las  autras  axamplairas 
originaux  sont  filmAs  an  commandant  par  la 
pramlAra  paga  qui  comporta  una  ampniinta 
dimprassion  ou  d'illustration  at  an  tarminant  par 
la  damlAra  paga  qui  comporta  una  taila 
amprainta. 


Tha  laat  racordad  frama  on  aach  microflcha 
ahaN  contain  tha  symbol  "^  (maaning  "CON- 
TINUiD").  or  tha  aymbol  ▼  (maaning  "END"), 


Un  daa  symboiss  suhrants  apparattra  sur  is 
damiAra  imaga  da  chaqua  microfioha,  ssion  la 
caa:  {•  aymbola  -^>  aignHIa  "A  8UIVRE",  la 
aymbola  y  signifia  "FIN". 


Mapa.  piataa,  eharta.  ate.,  may  ba  fNmad  at 
diffarant  raduetlon  ratkM.  Thoaa  ton  largo  to  bf/ 
antlraiy  Inchidad  In  ona  axpoaura  ara  fNmad 
baginning  hi  tha  uppar  kift  hand  oomar.  loft  to 
right  and  top  to  bottom,  aa  .iiany  framaa  as 
raqulrad.  Tha  foNowkig  ittagrama  iHustrata  tha 
mathod: 


Las  cartaa.  pianchas,  tablaaux,  ate,  pauvant  Atra 
fHmda  A  das  taux  da  reduction  diff Arants. 
Loraqua  la  document  ast  trap  grand  pour  Atra 
raproduit  an  un  saul  ciichA,  11  aat  filmA  A  partir 
da  I'angki  aupAriaur  gaucha,  da  gaucha  A  droKa. 
at  da  haut  an  bas,  an  pranant  la  nombra 
d'imagaa  nAcassalra.  Las  diagrammas  tjivants 
INustrant  la  mAthoda. 


1 

2 

3 

1 

2 

3 

4 

5 

6 

OSWEGO  BOABD  OF  TEAM 


RECIPROCITY 


■WITH 


riM  lorth  %mtxm 


VINDICATED. 


OSWEGO : 

JAB.  N.  BBOWN,  PBIHTEB. 
1860. 


^mpmtt)  Miitb  ^t^tfeb  ^^xtk  ^mmm. 


The  Committee  of  tbe  Oswego  Board  of  Trade,  to  whom 
was  referred  the  subject  of  tho  Treaty  of  Reciprocity 
with  Great  Britain  and  her  North  American  Provinces, 
together  with  the  Proceedings  of  the  Board  of  Trado  of 
Chicago  thereon,  beg  leave  to  Report : 

That  they  have  examined  the  Report  of  the  Hon.  Israel 
T.  Hatch  to  the  Treasury  Department,  which  prompted 
tho  action  of  the  Chicago  Board  of  Trade,  and  which  has 
brought  tho  subject  of  tho  Treaty  before  the  public  for 
discussion. 

Your  Committee  premise  that  they  have  found  it  difficult 
to  imagine  why  this  Commission  of  Mr.  Hatch  and  Mr. 
Taylor,  was  instituted  by  the  Department  without  any 
popular  call  or  legislative  pi'omptiug,  at  a  time,  too,  when 
tho  Treaty  was  vindicating  its  own  merits,  and  was  appa- 
rently satisfying  all  parties. 

Mr.  Hatch's  labored  and  protracted  investigation  results 
in  his  own  conviction  that  all  tho  benefits  of  this  Treaty 
inure  to  the  British  Provinces,  while  it  inflicts  great  injuries 
upon  the  United  States  ;  that  its  operation  is  unequal  and 
unjust,  containing  no  single  element  of  Reciprocity.  And 
to  crown  all,  Canada,  in  his  opinion,  has  violated  the  Treaty. 
To  enforce  and  fortify  these  conclusions,  Mr.  Hatch  has 
elaborated  his  Report  in  a  pamphlet  of  forty-six  pages. 

Mr.  Taylor  makes  a  brief  Report  to  the  same  Depart- 
ment, with  different  results.  He  believes  the  Treaty  confers 
reciprocal  benefits  upon  both,  or  all  the  contracting  parties, 
and  that  its  provisions  have  been  violated  by  none. 


Your  Committee  concur  in  opinion  with  Mr.  Taylob,  and 
hope  hy  a  brief,  but  careful  examination  of  the  provisions 
and  working  of  the  Treaty,  to  OBtablish  the  fact  that  its 
benefits  are  reciprocal  and  universal,  so  far  as  their  opera- 
tions extend. 

Before  entering  upon  the  discussion  of  this  Treaty,  a  brief 
allusion  to  the  former  commercial  relations  of  Great  Britain 
and  the  United  States,  will  be  appropriate. 

The  famous  Navigation  Laws  of  Great  Britain  are 
familiar  to  commercial  men.  Their  origin  was  in  1651, 
their  object,  the  monopoly  of  her  own  trade  and  that  of  her 
Colonies,  to  the  exclusion  of  all  other  Nations.  By  their 
operation  she  drove  Holland,  her  principal  rival,  from  the 
Ocean  during  the  last  century  ;  and  when  by  Treaty  she 
acknowledged  our  Independence,  she  applied  the  system  to 
us  in  all  its  rigor,  subsequently  modified  a  little  by  an  occa- 
sional Treaty,  relaxed  and  enforced  by  orders  in  Council,  as 
the  exigencies  of  war,  famine,  or  plenty,  dictated.  Her 
utmost  skill  was  exerted  to  cripple  and  restrict  our  trade, 
and  ours  to  counteract  and  defeat  her  measures.  We  fol- 
lowed her  enactments  step  by  step,  by  retaliation  and  sharp 
reprisal,  down  to  1849,  when,  instead  of  driving  us  from  the 
Ocean,  as  had  been  the  fate  of  Holland,  we  had,  under  this 
damaging  warfare,  well  nigh  divided  the  trade  of  the  world 
with  her,  having  at  the  present  time  attained  equal  tonnage 
with  the  mistress  of  the  seas. 

In  1849,  Sir  Robert  Peel  swept  these  ancient  and 
odious  Navigation  Laws  from  the  British  Statutes,  with  the 
exception  of  some  slight  remnants.  Our  retaliating  mea- 
sures fell  with  them, — we  having  enacted  a  law  in  the  early 
part  of  the  present  century,  tendering  reciprocal  free  trade 
to  all,  and  under  it,  had  formed  Treaties  of  Commerce  with 
several  European  Nations. 

Sir  BoBEBT  yielded  this  conflict  in  the  most  gracious 
manner  possible.    While  abrogating  her  Navigation  Laws 


and  her  long  cherished  Corn  Laws,  Great  Britain  opened 
her  ports  to  the  admission  of  most  of  the  raw  materials  for 
manufactures,  and  all  agricultural  products,  free  of  duty, 
other  than  nominal  duties,  to  preserve  a  record  of  trade  ; 
demanding  no  equivalent,  and  stipulating  for  no  relaxation 
of  restrictions  or  duties  in  return  for  this  boon. 

Another  commercial  movement  in  the  same  direction 
preceded  this  two  years.  In  1847,  Great  Britain  withdrew 
her  protection  of  the  trade,  and  her  pupilage  over  her 
North  American  Colonies,  withholding  her  bounty  or  dis- 
criminating duty  on  Colonial  products,  and  pn  trade  through 
the  St.  Lawrence,  with  the  exception  of  square  timber, 
(which  till  the  last  year  enjoyed  a  greatly  diminished  bounty 
or  protection,  now  wholly  withdrawn) ;  Canada  was  left  free 
to  regulate  her  own  trade,  and  construct  her  own  tariff. 
Availing  herself  of  her  newly  acquired  power,  she  raised 
the  duty  on  British  manufactures  from  5  to  7^  per  cent,  and 
reduced  duties  on  our  manufactures  from  12  to  7^  per  cent., 
thus  abolishing  differential  duties.  She  also  tendered  us  by 
legislation,  reciprocal  free  trade  in  all  the  commodities  of 
the  two  countries,  which  we  did  not  accept. 

Such  was  the  condition  of  things  in  Great  Britain  and 
her  American  Colonies,  and  such  our  relations  with  both  in 
1854,  when  the  Treaty  of  Reciprocity  was  negotiated  and 
ratified,  each  province  being  a  party,  and  ratifying  for  itself. 

This  Treaty  provides  for  the  free  navigation  of  the  St. 
Lawrence,  Lake  Michigan,  and  the  Canals  of  Canada ;  abro- 
gates the  restrictions  on  the  Fisheries,  and  exempts  from 
duty  the  following  natural  products,  viz  :  of  the  Sea,  of 
Mines,  of  the  Forest,  of  Animals  and  their  products,  and  of 
the  Soil. 

It  is  not  alleged,  so  far  as  regards  the  free  articles  of  the 
Schedule,  that  the  Treaty  has  not  been  carried  out  in  good 
faith  by  all  parties  ;  but  Mr.  Hatch  avers  that  it  has  been 
violated  in  spirit  and  letter  by  Canada,  in  her  tariff  of  duties 


6 

on  our  manufactures,  and  on  foreign  products  which  she  haa 
been  accustomed  tv>  purchase  in  our  markots,  and  also  in 
circumventing  our  Debenture  Laws,  and  in  thwarting  our 
restrictions  on  Lake  coasters.  Your  Committee  will  address 
themselves  to  these  i^itVactions  of  the  Treaty  before  they 
examine  its  working  aad  its  merits. 

TREATY  VIOLATED. 

Mr.  Hatch  says,  a  treaty  broken  is  a  treaty  no  longer  ; 
and  proceeds  to  show  that  Canada  has  violated  this  Treaty 
by  raising  her  tariff  of  duties  on  our  manufactures  (from  12 
to  an  average  of  16  per  cent,  according  to  Mr.  Taylor),  and 
also  by  protective  and  discriminating  duties,  intended  to 
shut  out  our  manufactures  from  her  markets,  and  divert  our 
trade  from  its  accustomed  channels.  This  being  the  great 
feature  of  his  Report,  has  been  sedulously  labored  and 
skillfully  elaborated  through   many  pages  of  the    work. 

Canada,  like  the  State  of  New  York,  has  embarked  in  an 
expensive  system  of  Canals,  without  much  regard  to  revenue. 
Both  parties,  and  both  systems  were  avowed  rivals,  and 
competitors  fur  the  same  trade,  viz  :  the  trade  of  each  other 
and  the  trade  of  the  West  beyond  and  remote  from  both. 
New  York  in  this  sharp  competition  has  embarrassed  her- 
self, and  has  been  driven  for  relief  to  direct  taxation  ;  but 
for  the  Federal  Government  standing  in  her  way,  she  would 
have  sought  this  relief  in  the  more  secret  and  insidious 
method  of  taxing  imports  and  consumption. 

Canada  has  even  outdone  us  in  extravagance  and  improvi- 
dence, and  has  well  nigh  swamped  herself ;  not  only  by  her 
unproductive  Canals,  but  she  too,  like  ourselves,  has  com- 
mitted the  folly  of  subsidizing  her  railroads  ;  not  like  us,  to 
the  tune  of  three  or  four,  but  twenty  millions,  and  all  hope- 
lessly sunk. 

She  must  seek  relief  in  revenue  or  repudiation.  More 
fortunate  than  New  York,  the  Imperial  Government  having 
left  the  door  wide  open  for  indirect  taxation  ;  she  has  taken 


a  leaf  from  our  federal  book,  and  imposed  taxes  on  imported 
manufactures,  and  other  products,  almost  as  lioavy  as  our 
federal  impositions.  Hers  average,  according  to  Mr.  Taylor, 
16,  while  ours  average  21  per  cent.,  ours  being  still  some  25 
per  cent,  higher  than  hers.  She  har  also  copied  another 
feature  from  our  book,  that  of  protection  to  domestic  indus- 
try, to  render  herself  independent  of  both  Old  and  New 
England. 

Of  her  revenue  tariff,  prompted  by  poverty,  wo  have  no 
right  to  complain.  Protection  is  a  problem  for  her  to  solve. 
Whether  it  is  wise  for  a  young  people,  like  Canada,  with 
illimitable  forests,  an  ample  and  growing  market  at  her  door 
for  her  sawed  lumber,  and  an  unlimited  market  across  the 
Ocean  for  her  squared  timber,  with  a  soil  productive  of 
bread,  and  in  England  *  and  the  Lower  Colonies  an  ample 
market,  whether  it  reaches  them  through  the  Hudson  or  the 
St.  Lawrence  ;  with  labor  dear,  and  capital  scarce  ;  whether 
it  is  wise  for  such  a  people  to  s-^ek  a  change  of  industry  by 
copying  from  Old  or  oven  Now  England,  time  must  demon- 
strate. 

Mr.  Hatch  not  only  charges  the  infraction  of  the  Treaty 
upon  this  tariff,  but  represents  it  as  a  breach  of  faith,  an 
act  of  ingratitude  after  receiving  tho  benefits  of  the  Treaty, 
and  p  groat  wrong  inflicted  upon  us. 

It  should  be  recollected  that  Canada  suddenly  awoke 
from  her  splendid  dream  of  monopoly,  to  find  herself  loaded 
with  a  debt  of  fifty  million  of  dollars,  sixteen  of  which  was 
sunk  in  the  crowning  folly  of  tho  Grand  Trunk  Railway  ; 
with  an  annual  deficit  of  four  millions  of  revenue.  It  mat- 
ters little  to  us  whether  she  imposes  this  deficit  upon  her 
consumption,  including  our  manufactures  and  those  of  Great 
Britain,  or  whether  she  raises  the  required  revenue  by 
direct  taxation,  both  impoverish  her  alike,  and  lessen  her 
ability  to  purchase  and  consume  our  products.  But  Mr. 
Hatch  presses  this  grievous  wrong  and  imposition  into  his 


an 


service  with  skill  and  industry,  reiterates  the  charge  with 
every  variety  of  expression,  such  as  "  taxing  our  labor  to 
build  works  to  rival  and  rob  us  of  our  commerce ;"  "  by 
imposing  extraordinary  taxes  upon  the  products  of  American 
industry,  she  is  compelling  us  to  bear  her  burdens,  created 
to  sustain  gigantic  rivalries,  worthy  of  Imperial  ambition, 
for  supremacy  by  land  and  water  over  our  inland  commerce, 
and  for  the  grave  influence  which  thus  may  be  exercised 
upon  our  political  career, "  leaving  the  impression  that  we 
are  a  greatly  injured  Nation,  and  that  too,  by  a  people  on 
whom  we  have  just  bestowed  boundless  benefits. 

In  pushing  his  complaints  so  far,  he  has  betrayed  Mr. 
Ely  into  the  avowal  in  his  Congressional  speech,  thcU  we 
pay  these  duties,  not  Canada, 

The  plain  English  of  all  this  declamation  is,  that  Canada 
takes  three  or  four  millions  of  our  fabrics  and  products  for 
consumption,  imposing  upon  herself  through  her  tariff,  a 
heavy  duty. 

England,  too,  is  subjected  to  the  same  imposition  and  the 
same  sufifering,  and  bears  it  with  becoming  equanimity,  and 
would  willingly  relieve  "  the  fruits  of  our  industry,"  as  Mr. 
Hatch  has  it,  from  these  impositions,  by  furnishing  these 
three  or  four  millions  herself,  to  be  taxed  as  best  suits  the 
interest  or  theories  of  Canada. 

We  desire  to  treat  Mr.  Hatch  with  the  respect  due  to 
his  talents  and  his  position,  but  if  he  will  indulge  in  clap- 
trap he  must  not  ask  us  to  treat  it  with  the  gravity  of  an 
argument. 

If  it  is  a  great  wrong  to  impose  duties  on  our  manufac- 
tures, it  must  be  right  to  protect  and  fabricate  them  for 
herself,  yet  here,  too,  Mr.  Hatch  finds  a  fruitful  topic  of 
complaint.  Here  lies  the  sum  and  substance  of  the  infrac- 
tion of  the  Treaty.  The  parties  agree  to  exchange  bread 
and  meai  without  duty,  and  forthwith  Canada  raises  Ler- 


dnty  on  cotton  fabrica  and  wUahy  which  were  not  embraced 
in  tiie  free  Schedule. 

Had  Mr.  Mobrel's  bill  passed  Congress,  raising  duties 
and  imposing  specific  and  protective  duties  on  similar  arti- 
cles, we  too,  should  have  come  under  Mr.  Hatch's  charge  of 
Treaty  breakers. 

Although  a  union  exists  between  Oanada  East  and  Canada 
West,  there  is  not  harmony.  The  Lower  Province  found 
when  the  staple  and  other  natural  products  of  Upper 
Canada  were  relieved  from  duty,  and  from  the  formalities 
and  expenses  of  our  debenture  bonds,  that  a  strong  impulse 
was  given  +0  her  trade  with  us,  and  through  us  with  the 
Lower  Provinces  and  Great  Britain.  To  counteract  this 
tendency,  and  force  her  trade  and  allure  ours  to  the  St. 
Lawrence,  the  undue  power  of  Lower  Canada,  which  was 
paramount  in  the  union,  was  called  into  requisition,  and 
arrayed  (.gainst  Canada  West  and  our  channels  of  trade. 
The  gratuitous  use  of  her  locks  and  canals  was  tendered  to 
the  trade  of  the  St.  Lawrence,  and  her  discriminating  duties 
were  shaped  to  promote  it.  This  Legislation,  unfriendly 
and  unwise,  as  your  Committee  believe,  has  well  nigh  proved 
abortive.  The  Montreal  Herald  reports  the  arrival  to  Sept. 
27th,  1854,  (thefirst  year  of  Reciprocity),  258  vessels,  tonnage 
71,072  ;  and  1860,  140  vessels,  tonnage  82,460,  and  this  is 
the  port  at  which  the  provincial  trade  centers,  with  the 
exception  of  the  timber  trade  of  Quebec  ;  no  more  than  a 
natural  increase  of  trade  without  the  effect  of  discrimination. 

Mr.  Hatch's  remedy,  or  retaliation  for  this  hostility  from 
one-half  of  one  of  these  five  contracting  parties  is,  to  abro- 
gate the  Treaty  with  all ;  revive  our  duties,  retire  from  the 
St.  Lawrence,  withdraw  our  debenture  facilities  from  Upper 
Canada,  and  thus  com/pd  her  to  trade  through  the  St.  Law- 
rence, playing  into  the  hands  of  Lower  Canada,  a  system  of 
non-intercourse,  which  would  reduce  a  trade  of  more  than 

forty  to  less  than  ten  millions  again. 
2 


■ix 


-0 

We  cannot,  in  justice  to  bur  citizens  and  our  creditors 
counteract  these  measures  hy  the  gratuitous  use  of  our 
locks  and  canals  ;  but  your  Committee  believe  sound  wisdom 
dictates  that  we  cherish  free  trade  with  all  the  Provinces  ; 
counteract  their  protective  and  discriminating  policy  by 
continued  and  increased  facilities  in  our  own,  and  to  other 
markets  through  our  channels.  "We  would  drive  them 
from  the  forge  and  the  anvil,  to  the  forest  and  the  saw  mill, 
by  buying  their  boards  ;  and  from  the  spindle  and  loom,  to 
the  plough,  by  transporting  its  products  through  the 
cheapest  channel  to  the  best  market.  A  little  patience  and 
good  temper  on  our  part  will  set  a]l  right. 

Canada  West  with  her  fine  climate,  rich  soil,  and  com- 
mercial capabilities  will  grow  populous  and  rich,  and  soon 
assert  and  maintain  her  rights,  and  under  a  liberal  and  just 
policy,  minister  largely  to  our  prosperity.  She  is  already 
taking  efficient  measures  to  reform  the  (government  and 
secure  the  power  due  to  her  population. 

CANAL  AND  RAILWAY  RIVALRY. 

Mr.  Hatch  inculcates  the  theory  with  zeal  and  industry, 
^]nt  the  two  Canadas,  the  British  capitalist,  and  the  Impe- 
rial Government,  have  combined  to  monopolize  the  trade  of 
the  far  West,  by  means  of  Canals  and  Railroads,  without 
regard  to  income  oi  profit. 

The  same  theory  has  been  widely  propagated  by  our 
Railroads,  and  great  merit  claimed  for  counteracting  this 
gigantic  monopoly.  Mr.  Hatch  says,  page  34 :  "  The 
changes  to  be  produced  by  this  grasping  monopoly  will  l)e 
developed  with  the  rapidity  characteristic  of  modern  times. 
They  will  include  the  whole  system  of  our  commercial 
industry." 

Again,  page  35,  "  This  vast  commercial  struggle  where 
monopoly  is  the  end  to  be  gained,  must  terminate  in  a 
colossal  combination  of  American  capital  and  ability,  or  the 


I 

•IK' 


■'9 


M 


iris 


u 


field  must  be  abandoned  to  their  Royal  rival."    Here  we 
have  eloquent  declamation  to  propagate  a  bald  fiction. 

Canada,  one  of  the  British  Provinces,  has  inaugurated  a 
system  of  Canals  with  her  own  means,  and  her  own  credit, 
"  out  of  all  proportion  to  her  wants,"  as  Mr.  Hatch  avers, 
looking  to  the  trade  of  the  W^st. 

New  York,  one  of  the  United  States,  has  done  precisely 
the  same  thing,  the  magnitude  of  her  works  is  out  of  all 
proportion  to  her  wants.  The  Railroads  of  both  Canada*, 
and  New  York  are  constructed  and  managed  by  private 
capitalists,  and  both  upon  the  same  scale,  and  looking  to 
the  fw  West  for  patronage  ;  the  New  Yorlc  Roads  subsi- 
dized moderately,  and  the  Canadian  largely  by  the  Local 
Governments.  All  were  gainful  schemes,  many  have 
proved  delusive  ones  ;  none  have  been  prompted  by  politics 
or  patriotism.  It  is  believed  that  more  British  capital  is 
embarked  in  our  Railroads  and  Canals,  seeking  Western 
trade,  than  in  similar  Canadian  works. 

The  British  Government  constructed  the  Rideau  Canal, 
127  miles  in  length,  soon  after  the  War,  from  her  military 
chest ;  it  is  in  no  sense  a  rival  for  trade.  The  Commission- 
ers of  the  Board  of  Works  say  in  their  Report,  December. 
1859,  page  23,  that  "  the  work  was  handed  over  to  this 
Department  in  a  dilapidated  condition,  demanding  a  large 
expenditure  of  money  ;  that  its  revenues  are  <'erived  chiefly 
from  local  traffic,  lumber, iron  ore,"  <fec.  Herein  is  comprised 
the  much  bruited  Royal  monopoly,  the  Imperial  prodigality 
to  ruin  our  trade  and  drive  us  from  the  field. 

It  should  be  remembered,  if  all  these  fears  are  realized, 
if  British  capital  could  be  enlisted  to  build  and  maintain 
Roads  and  Canals,  and  tender  them  to  commerce  gratui- 
tously, and  thus  furnish  the  cheap  channel  for  trade  between 
the  Atlantic  and  the  lakes,  even  then,  the  major  interest 
of  the  Lake  region  would  be  promoted,  the  rnino)'  interest 
only  injured.    The  Agriculturist,  the  great  producer  and 


consumer,  would  enjoy  this  bounty,  this  free  road  to  market^ 
while  the  defeated  lines  of  commerce  would  suffer  a  dimi- 
nution of  patronage,  and  be  compelled  to  turn  over  their 
supernumeraries  to  the  more  favored  occupation. 

The  Rochester  boat  builder  and  the  Buffalo  and  Oswego 
boatmen  must  turn  farmers,  but  the  lake  coaster  would  still 
pursue  the  trade  to  Montreal  and  Quebec,  and  the  Atlanti':. 
ship  would  compete  for  it  at  Quebec  and  Portland.  New- 
York  city  might  suffer,  but  Detroit  and  Milwaukee  need 
not  be  alarmed.  The  day  for  protection  and  monopoly  has 
gone  by.  The  Grand  Trunk,  with  its  magnificent  and 
alarming  proportions,  must  sustain  itself  or  sink.  Canada 
is  paralysed  and  cannot  come  to  its  relief.  British  capital 
will  no  longer  bear  depleting,  and  Great  Britain,  under  a 
revised  and  liberal  policy,  has  secured  a  large  share  of  the 
trade  of  our  Continent,  and  cares  not  whether  it  reaches  her 
through  the  St.  Lawrence,  the  Hudson,  or  the  Chesapeake  ; 
knowing,  as  she  does,  that  the  more  numerous  its  competing 
channels,  the  more  they  minister  to  the  prosperity  of  her- 
self and  her  Colonies. 

The  Montreal  Witness,  in  a  recent  issue,  says,  "  The 
aifairs  of  the  Grand  Trunk  Railway  appear  to  be  approach- 
ing a  crisis,  and  it  is  generally  anticipated  that  the  whole 
concern  will  have  to  be  sold  for  debt."  The  same  article 
attributes  its  misfortunes  to  bad  and  corrupt  manage  ment 
and  they  might  have  added  appropriately,  from  Mr.  Hatch's 
Report,  that  they  transported  flour  from  the  Mississippi  to 
Portland,  for  prices  fabulously  low. 

Ju  discussing  the  merits  and  working  of  the  Treaty,  the 
following  heads  may  be  disposed  of  briefly,  as  it  is  believed 
nobody  complains  of  them  but  Mr.  Hatch,  viz  :  The  Fishe- 
ries, The  St.  Lawrence,  Animals  and  Minerals. 

In  relation  to  the  Fisheries,  all  will  admit  that  a  subject 
of  National  disquietude  has  been  disposed  of.    A  branch  of 


18 

« »• 

industry,  though  regulated  by  Treaty,  demanding  to  be 
watched  over  by  the  men-of-war  of  both  contracting  parties 
was  troublesome  and  dangerous.  The  duty  of  this  hostile 
armament  was  to  keep  the  fisherman  to  the  prescribed  line 
in  pursuit  of  his  game,  which  line  was  on  the  Ocean  at  a 
definite  number  of  leagues  or  miles  from  head  lands  and 
bays.  A  better  contrivance  to  embroil  friendly  Nations 
in  war  could  not  have  been  devised  by  the  wit  of  man.  It 
matters  but  little  who  catch  the  fish,  provided  the  consumer 
can  have  them  at  a  cheap  rate,  free  from  duty.  As  a  school 
for  seamen,  its  effects  are  neutralized,  when  each  maratime 
Nation  protects  is  own  fisheries. 

Of  the  St.  Lawrence,  while  exclusively  navigated  by 
Great  Britain,  it  has  been  the  fashion  to  disparage  its  value 
and  importance,  on  account  of  its  high  latitude,  environed 
and  crowded  by  Islands,  ice  bound  and  befogged  for  half 
the  year.    But  since  we  have  acquired  a  right  to  this  channel 
by  Treaty,  by  abrogation  of  the  English  Navigation  Laws, 
and  by  modern  international  law,  as  expounded  at  Vienna 
by  the  Congress  of  Sovereigns  in  1816,  it  is  pertinent  to 
enquire  whether  it  is  as  worthless  as  Mr.  Hatch  and  his 
coadjutors  would  make  it.    The  American  lakes  and  their 
outlet  occupy  a  section  of  that  belt  which  carries  forward 
the  entire  commerce  of  the  Globe ;  their  latitude  not  as 
high  as  that  of  the  English  Islands,  or  the  Baltic  Sea.    The 
navigation  of  Ontario  and  the  St.  Lawrence  is  pradicaUe  5^8 
long  as  that  of  the  Hudson,  and  is  8qfe  and  jprofiiaMe  for  the 
same  period  of  the  year,  as  that  of  Lake  Erie  and  the  Erie 
Canal.    The  Summer  temperature  of  the  North  invites  and 
allures  the  trafiic  of  the  vallies  of  the  lakes,  and  the  Upper 
Mississippi,  through  the  Gulf  of  St.  Lawrence,  while  the 
fervid  heat  of  the  South  repels  this  trade  through  the  Gulf 
of  Mexico.    Winter  reverses  this  traffic.    Nature  has  estab- 
lished reciprocity  among  all  the  channels  of  commerce,  and 
forbids  our  impeding  any  by  selfish  and  hostile  enactments. 


.  * 


14 


For  most  of  the  period  since  we  became  a  Nation,  Quebec 
has  been  the  field  of  more  traffic,  and  the  resort  of  more 
foreign  tonnage  than  any  other  port  on  the  Continent. 
When  the  St.  Lawrence  was  improved  at  great  expense,  the 
inland  and  coasting  trade  alone  was  provided  for.  It  is 
estimated  by  the  Board  of  Works  that  another  foot  of  water 
may  be  obtained  through  this  channel  at  the  moderate  cost 
of  a  million  of  dollars,  conforming  it  in  depth  to  the  Wel- 
land  Canal,  greatly  promoting  the  Lake  and  Atlantic  trade, 
and  rendering  it  far  more  eflfective  than  the  gratuitoup  use 
of  locks.  It  cannot  be  doubted  that  with  its  slight  improve- 
ment, and  some  modification  in  the  structure  of  our  lake 
coasters,  a  large  amount  of  tonnage  will  seek  the  Atlantic 
markets  through  this  channel,  during  the  Summer,  as  regu- 
lar traders,  and  a  much  larger  amount  as  Winter  approaches, 
to  secure  occupation  in  milder  climates.  But  monopoly  is 
inhibited  by  climate  to  any  and  all  routes. 

The  Detroit  Tribune  in  a  late  issue,  gives  a  list  of  lake 
coasters  seeking  the  Atlantic  for  employment,  comprising 
ten  barques,  five  brigs,  forty-one  schooners,  one  propeller, 
and  eight  tugs,  within  the  last  two  years  ;  total  tonnage  of 
all,  except  the  tugs,  18,085  tons.  Two  of  the  barques  and 
one  schooner  are  Canadian  vessels.  Two  of  the  schooners 
only  have  been  wrecked. 

Total  entries  of  sea-going  vessels  for  Canada,  inwards  and 
outwards,  for  the  year  1859,  British,  Colonial  and  Foreign 
vessels  included,  number  3,333.    Tonnage  1,282,233  tons. 

Of  Animals  and  their  product,  it  will  be  sufficient  to 
say,  that  the  exchanges  between  Canada  and  ourselves, 
seem  to  balance  each  other  with  remarkable  accuracy.  We 
copy  from  Mr.  Hatch's  tables  : 

Imported  into  United  States. 


Imported  into  Canada. 

1856 t2,896,S8S 

1857 2,184,880 

1S58 1,4U,878 

16,496,060 


% 


1866 $3,876,888 

1887; 1,97<616 

1868 ,  S,«U,78« 

tS.661.WO 


15 


In  this  trade  there  seems  to  be  sufficient  reciprocity  to 
satisfy  the  most  captious.  ' 

MINERALS. 

Your  Committee  are  not  aware  that  any  other  minerals 
than  coal  are  exchanged  under  the  Treaty.  We  subjoin 
the  amount  of  imports  and  exports  for  the  last  three  years 
of  the  Treaty : 

Imported  into  Canada.  Imported  into  United  States. 


1866 $448,984 

186T 609,494 

1868 824,874 


1856 $84,228 

1867 169,894 

1668 98,406 


$1,822,862  $867,627 

Here  we  find  three  and  one-half  times  as  much  Coal  ex- 
ported to  Canada  from  the  mines  of  Pennsylvania,  Ohio, 
and  perhaps  Northern  Virginia,  as  are  imported  from  Eng- 
land and  Nova  Scotia  to  our  Atlantic  ports.  Yet  Mr. 
Hatch  would  invoke  from  the  federal  government  a  pro. 
tective  and  prohibitory  duty  on  this  diminutive  quantity  of 
Coal ;  thereby  enhancing  its  cost,  and  stinting  the  supply 
to  New  England  of  an  article  of  prime  necessity  in  her 
rigorous  climate,  denuded  of  timber,  and  destitute  of  this 
mineral,  so  important  an  element  in  her  manufacturing 
industry.  Mr.  Hatch  insists  that  we  may  impose  these 
duties  on  our  citizens  without  any  fear  of  similar  impositions 
by  Canada  on  hers.  He  says,  she,  too,  has  a  rigid  climate 
her  forests  are  fast  disappearing,  her  minerals  are  all 
metals,  and  demand  our  Coal  for  smelting  them  ;  and  it 
would  have  been  in  harmnoy  with  his  report,  if  he  had 
added  her  future  great  manufacturing  cities,  which  are  to 
grow  up  under  protective  fostering,  must  have  coal.  And  by 
the  bye,  it  occurs  to  us  to  inquire  how  New  England,  with 
her  fuel  heavily^taxed,  is  to  compete  with  Canadian  manu* 
factures  protected  by  a  provident  and  paternal  Govern' 
ment.  How  is  she  to  furnish  the  "  fruits  of  her  industry," 
as  Mr.  Hatch  has  it,  cheap  enough  to  bear  Canadian  taxa- 
tion? 


■j^WtP 


Hi 


i  '  i 

i !  i 


16 

This  Treaty,  in  minerals,  works  in  this  wise :  We  import 
into  New  England,  one  hundred  and  twenty  thousand  dol- 
lars  worth  of  coal  per  annum.  The  Federal  Government 
loses  duty,  probably  on  half  this  amount,  or  20  per  cent,  on 
60  thousand  dollars,  being  $12,000  per  annum,  while  we 
open  a  trade  in  coal  through  the  Canals  and  Bailroads  of 
New  York,  Pennsylvania  and  Ohio,  of  nearly  half  a  million 
annually,  yielding  large  revenues  to  these  States,  and  profit- 
able occupation  to  their  citizens.  Pennsylvania  coal  is  now 
competing  at  Montreal  with  that  of  Liverpool  and  Nova 
Scotia,  aided  by  the  gratuitous  use  of  the  St.  Lawrence 
locks. 

PBODUGTS  OF  THE  SOIL  AND  THE  FOREST. 

These  features  of  the  Treaty  demand  a  more  elaborate 
discussion,  from  the  doubts  entertained  of  their  utility,  and 
the  opposition  provoked  by  them  to  its  ratification,  and  also 
from  the  hostile  attacks  upon  them  since  it  has  been  in 
operation. 

Of  Bbeadstdffs,  the  staple  of  both  Canada  West  and  of 
the  States  bordering  on  the  lakes,  their  exchange  generally 
does  not  involve  the  question  of  revenm  or  consumption^  it 
is  merely  a  question  of  commerce  or  transportation. 

Two  countries  contiguous  to  each  other,  producing  a  sur- 
plus of  the  same  commodity,  will,  when  not  impeded  by 
artificial  means,  seek  the  same  markets  for  this  surplus,  and 
through  the  cheapest  channels.  Hence,  if  our  entire  crop 
should  seek  a  foreign  market  through  the  St.  Lawrence,  it 
would  in  no  manner  depress  or  impair  the  value  of  the 
Canada  crop.  If  a  single  barrel  of  our  flour  or  many  bar- 
rels should  fall  into  their  consumption,  another  barrel  or  an 
equal  number  of  barrels  of  Provincial  flour  would  take 
their  place  and  seek  a  foreign  market.  So  again,  if  the 
Canadian  surplus  should  seek  a  foreign  market  through  the 
Hudson,  it  would,  in  no  manner,  affect  our  farmers  or  our 


■i 


3 


11 


import 
nd  dol* 
rnment 
ent.  on 
lile  we 
oads  of 
million 
1  profit- 
is  now 
Nova 
wrence 


Eiborate 
ty,  and 
nd  aI»o 
)een  in 

;  and  of 
morally 
otton,  it 

J  a  sur 
ded  by 
us,  and 
e  crop 
nee,  it 
of  the 
ly  bar- 
[or  an 
.   take 
if  the 
;h  the 
)r  our 


revenue.  All  the  clamor,  therefore,  aboiit  the  Ganadianei 
overwhelming  us  with  breadstufifs,  ruining  our  markets, 
running  a  muck  with  our  farmers,  taking  the  bread  out  of 
their  mouths,  and  our  "  carrying  coals  to  Newcastle  "  when 
Our  flour  goes  to  Canada,  is  idle  declamation,  mere  clap-trap. 
The  truth  is,  those  who  provide  the  best  channel  for  these 
surpluses,  partake  most  largely  of  the  benefits  of  the  Treaty, 
and  minister  most  to  the  prosperity  of  the  producer,  whether 
a  subject  of  the  Queen  or  a  citizen  of  the  Kepublic. 

Here  we  might  quote  Mr.  Hatch,  who,  in  his  zeal  to 
establish  the  inequality  of  the  Treaty,  has  unwittingly 
admitted  and  affirmed  its  equality  and  reciprocal  working. 

Page  24,  Mr.  Hatch  says  :  "  As  Canada  produces  more 
wheat  and  flour  than  she  can  use,  our  shipments  to  her  are 
not  made  for  consumption,  but  must  compel  the  return  of 
the  same  or  an  equivalent  to  us,  chiefly  in  a  manufactured 
condition,  at  the  expense  of  the  milling  interests  of  this 
country,  or  its  shipment  to  Europe  in  foreign  vessels,  at  the 
expense  of  our  American  bottoms."  This  is  all  true,  but  it 
happens  to  be  but  half  the  truth.  As  we  too,  produce  more 
wheat  and  flour  than  we  can  use,  when  Canadian  wheat 
and  flour  come  here,  it  is  not  for  consumption,  but  must  bo 
returned,  or  its  equivalent,  chiefly  in  a  manufactured  condi- 
tion, at  the  expense  of  the  milling  interests  of  Canada,  or 
shipped  to  Nova  Scotia,  Great  Britain  or  elsewhere,  mostly 
in  American  bottoms,  at  the  expense  of  foraign  vessels. 
Had  Mr.  Hatch  completed  the  paragraph,  and  told  the 
whole  truth,  he  would  have  established  our  proposition. 
Thus  far,  our  channels  have  enjoyed  these  benefits  in  a 
higher  degree  than  those  of  Canada. 

There  are,  however,  some  exceptions  to  the  rule  hero  laid 
down.  One  branch  of  this  trade,  and  an  important  branch, 
that  does  not  come  under  the  head  of  transportation  or  of 
reciprocity,  so  far  as  breadstufifs  are  concerned  is,  Indian 


Corn  and  its  products.  DuriDg  the  year  ending  30th  June, 
1859,  we  exported  to  Canada,  Corn  and  its  products  com- 
prising, 

Indian  Heal,  Lard,  Pork,  Hams  and  Baoon,  of  tho  aggregate  Talue  of |1,180,«TS 

Same  u  tides  to  the  other  British  American  Provlnoes 1,12T,S06 

Together t3|808,0T8 

This  agricultural  product  goes  into  consumption,  and  is 
expended  largely  in  their  fisheries,  lumbering  and  shipping, 
and  for  the  manufacture  of  whisky.  This  corn  and  its  pro- 
ducts go  far  toward  the  payment  of  our  imports  of  tho 
products  of  the  forest  ;  which  in  1858,  amounted  to  $3,290,- 
383 — and  this,  too,  is  an  article  of  consumption.  An 
exchange  as  beneficial  to  both  parties  as  an  exchange  of 
commodities  between  the  tropics  and  the  temperate  zone. 

Corn  is  produced  in  great  abundance,  and  at  small  cost 
on  the  rich  bottoms  of  the  Ohio,  the  Wabash  and  the 
Illinois,  and  matured  by  a  warm  climate  before  the  frost 
overtakes  it.  While  the  pine  lumber,  a  necessary  article  of 
consumption  in  building,  fencing  and  manufactures,  is  pro- 
duced in  a  high  latitude,  on  sterile  and  cheap  land. 

On  lumber,  the  Federal  Government  has  sacrificed  a  small 
amount  of  revenue,  while,  by  its  freedom  and  expansion. 
New  York  has  acquired  a  large  canal  revenue,  and  her  citi- 
zens extensive  and  profitable  occupation. 

Our  lake  shipping  share  most  largely  in  its  transport,  and 
our  canals  monopolize  it. 

There  is  still  another  exception  to  this  rule,  another  por- 
tion of  this  exchange  of  breadstuff's  which  is  reciprocal,  and 
goes  into  consumption.  Canada  East  consumes  largely  of 
the  Spring  wheat  of  Wisconsin  and  Illinois,  taking  it  partly 
in  the  berry  direct  from  these  States,  and  partly  in  flour 
ground  in  the  State  of  Now  York.  She  prefers  this  wheat 
to  the  fine  article  from  Canada  West,  partly  from  habit  and 
partly  from  economy.  She  has  been  accustomed  to  raise 
her  lull  supply  of  this  description  of  grain,  but  at  times, 


19 

from  failure  of  crops  and  diminished  culture,  she  probably 
draws  half  her  supply  for  a  population  of  a  million,  from 
abroad.  A  cheap  article,  exempt  from  duty,  has  allured  her 
to  our  Prairie  States  for  this  supply.  On  the  other  hand. 
New  England  consumes  largely  of  the  fine  wheat  and  flour 
of  Canada  "West,  since  her  accustomed  supply  of  Genesee 
lias  failed,  and  since  its  exemption  from  duty,  has  brought 
it  within  her  reach. 

Prom  an  exhibit  of  the  Trade  and  Commerce  of  Toronto, 
(C.  W.,)  for  1859,  we  make  the  following  extracts  :  "  The 
demand  for  our  flour  during  the  past  year,  has  been  from 
Montreal  and  Quebec  for  the  lower  grades,  while  for  f  .  cies 
and  extras,  purchases  have  been  mainly  made  for  3ooton 
and  other  New  England  markets."  Again,  "  The  manufac- 
turing districts  of  the  New  England  States  require  a  descrip- 
tion of  flour  superior  to  any  that  has  hitherto  been  produced 
in  the  West." 

Of  barley  it  says :  "  Over  167,000  bushels  have  been 
exported  the  last  year  ;  the  purchases  for  export  were 
mainly  with  a  view  to  the  Albany  market,"  (breweries.) 

"  The  impert  of  Indian  corn  at  this  point  last  year,  for 
the  manufacture  of  whisky,  amounts  to  143,524  bushels , 
valued  at  $100,333."  Here  is  reciprocity  ;  with  this  differ- 
ence, we  obtain  the  best  beverage. 

Revive  the  duty  of  20  per  cent,  on  bread,  yielding  but  a 
paltry  revenue  to  the  Federal  Government,  an  extensive 
and  beneficial  trade  would  be  broken  up.  Canada  East 
would  be  compelled  to  eat  a  white  and  a  dear  loaf,  while  New 
England  would  have  the  alternative  of  a  taxed  loaf,  or  a 
brown  one.  Illinois  and  Wisconsin  would  flood  their  single 
market,  already  overstocked,  with  Spring  wheat.  And  here 
we  may  repeat  the  question,  how  is  New  England  to  com- 
pete with  the  protected  manufactures  of  Canada,  with  her 
bread  taxed,  as  well  as  her  fuel  ?    It  is  apparent  that  free 


■fBl 


ll: 


20 

trade  in  breadstuflfa,  a  subject  8o  fruitful  of  cavil  and 
clamor,  is  not  so  barren  of  benefits  as  a  superficial  observer 
would  imagine.  Their  exchange  for  consumption,  so  far  as 
it  goes,  is  highly  beneficial  to  both  parties,  the  remainder 
having  the  choice  of  the  cheapest  and  best  channel  to  a 
distant  market,  exempt  from  duty,  and  free  from  the  formali- 
ties and  expenses  of  our  debenture  system. 

The  free  importation  of  Canada  lumber  is  fraught  with 
benefits  to  all.  On  our  part,  the  carrier,  the  canals  and  the 
consumer  share  largely  and  directly  in  these  benefits,  and 
the  manufactures  of  New  England  and  New  York  inci- 
dentally. Canada  finds  appropriate  and  profitable  occupa- 
tion in  its  preparation  and  transport,  and  derives  from  its 
gale  an  ample  tund  with  which  to  purchase  from  us  her 
agricultural  implements,  her  building  materials,  and  staple 
fabrics  for  consumption. 

Your  Committee  are  not  familiar  with  the  lumber  trade 
on  the  seaboard,  but  observe  in  the  statistics  of  trade  that 
we  export  to  the  Lower  British  North  American  Provinces, 
pitcli  pine,  locust,  hickory,  black  walnut  and  oak,  which 
they  do  not  produce  ;  and  it  is  believed  that  Maine  finds 
some  equivalent  in  the  free  use  of  the  St.  Johns  River,  for 
the  competition  of  New  Brunswick  in  the  pine  lumber  trade. 

Our  Debenture  system  Mr.  Hatch  treats  as  a  proffbred 
l)oon,  rejected  and  thwarted  by  Canada.  So  far  from  a 
boon,  its  aim  and  object  was  to  promote  our  carrying  trade, 
by  alluring  to  our  Atlantic  ports  the  products  of  other  Na- 
tions, to  be  again  distributed  to  their  respective  markets, 
exempt  from  duty,  other  than  a  commission  or  tax  of  2^  per 
cent.  Its  operation  was  extended  to  Canada  and  New 
Mexico  by  act  of  Congress,  August,  1846.  Now,  inasmuch 
as  Lower  Canada  has  endeavored,  by  discriminating  duties 
and  protective  laws,  to  annul  and  counteract  the  operation 
of  this  debenture  system,  and  force  Oanada  West,  as  Mr. 


t 


21 

Hatch  says,  to  import  her  tropical  products  by  a  circuit 
through  the  St.  Lawrence,  of  a  thousand  miloa,  therefore  he 
would  annul  the  law,  and  compel  Upper  Canada  to  import 
and  export  through  this  circuitous  channel,  thus  playing 
into  the  hands  of  Lower  Canada,  and  yielding  this  valuable 
branch  of  the  carrying  trade. 

We  subjoin  extracts  from  oiHcial  tables  of  Canada  "  Trade 
and  Navigation  "  for  1859,  page  199. 

Imported  through  the  Unit'd  states  under  dobenturo  bondH,  lit  vnlun $4,MC,491 

Of  which  pays  25  per  cent,  duty |  2S,05<2 

"  "    ao  and  IS  per  cent 4,278,'i«7 

"  "    10  and  6  nor  cent 120.MT 

Purcbanod  in  the  United  States,  products  of  other  countries 5,851 ,8Cr> 


Foreign  products $0,898,856 

ProdncU  of  United  States 12,287,641 


or  which  pays  25  per  cent,  duty |  140,011 

"  "    20  and  15  per  cent,  duty 2,487,251 

"  "10  and  5  per  cent  duty 500,724 

Free  goods 8,04U,22o 

Total  imports |22,139,89T 

Of  the  foreign  products,  tea  amounts  to  5,825,052  lbs,  of 
the  value  of  $2,071,339,  which  is  imported  from  China  in 
American  bottoms,  exported  to  Canada  through  our  canals 
and  railroads,  yielding  freight,  warehouse  charges  and  mer- 
cantile profits.  It  is  difficult  to  imagine  a  more  suicidal 
measure  than  the  one  proposed  by  Mr.  Hatch,  of  repealing 
the  Debenture  Laws,  so  far  as  they  relate  to  Canada, 

COASTING  TRADE. 

The  only  remaining  subject  of  criticism  and  complaint  is 
the  International  Coasting  Trade.  Mr.  Hatch  says  :  "  In 
this  competition  of  shipping,  American  ship  owners  run  a 
race  in  fetters.  The  staple  manufacture  of  Canada  has  long 
been  that  of  ship  building  for  exportation,"  <fec.  If  this  be 
so,  the  result  tells  well  for  the  bottom  and  speed  of  the 
American  ship  owner. 

By  referring  again  to  Report  of  the  Canadian  Board  of 
Works,  page  143,  we  find  the  tonnage  of  the  Lakes  and  St. 
Lawrence  for  1859,  divided  as  follows,  viz : 


rrrei 


m 


22 

▲BMlotD  VenMl,  l.Me,  ToBMgt 819,460 

gBB»dliB       do.       88«,       do fO,7M 

By  referring  again  to  Report  of  "  Trade  and  Navigation" 
of  Canada  for  1859,  page  275,  it  appears  that  the  coasting 
trade  to  and  from  66  Canadian  ports,  is  divided  as  follows  : 

Kntries  inward  and  outward  of  Ameriou  itotm  and  tail  Tcualo, Tonnage  4,683,894 

do.  do.  Outadlan, do.    9,8SA,986 

(ferrloN  excluded.) 

The  British  navigation  laws  forbid  to  American  vesselK 
the  coasting  trade  of  the  British  North  American  Pro- 
vinces, while  our  retaliatory  laws  forbid  to  provincial  ves- 
sels our  coasting  trade.  All  discriminating  restrictions  on 
direct  trade  between  these  Provinces  and  the  States  have 
been  removed,  while  coasting  restrictions  have  been  greatly 
modified  and  ameliorated. 

We  find  in  United  States  "  Commercial  Relations,"  vol.  I, 
pages  56  and  57,  the  following  remarks;  after  alluding 
to  the  restrictions  on  trade  with  the  British  West  and  East 
Indies,  it  says  :  "  With  the  North  American  provinces, 
however,  a  system  of  the  most  liberal  and  unrestricted 
character  has  been  adopted,  which,  to  a  great  extent, 
places  commercial  intercourse  between  the  United  States 
and  these  provinces  on  the  footing  of  an  unfettered  coast- 
ing trade."  Passenger  vessels  are  allowed  to  land  on  the 
opposite  coasts,  from  point  to  point ;  passengers  with  their 
baggage,  family  stores,  implements  of  trade,  «fec. 

The  treaty  of  reciprocity  by  opening  the  navigation  of 
the  St.  Lawrence,  the  Canals  and  Lake  Michigan,  has  still 
further  relaxed  these  restrictions.  Our  vessels,  passing 
down  the  St.  Lawrence,  or  through  it  to  the  ocean,  are 
obliged  to  pass  several  Canadian  ports  of  entry,  and  are 
allowed  to  lighten  at  the  locks,  and  reload  at  Montreal  or 
Quebec  ;  or  pass  the  locks  partly  loaded,  and  fill  up  below 
for  a  foreign  voyage.  While  through  the  intervention  of 
the  Canadian  Railways,  a  coasting  trade  is  sanctioned, 
which  would  otherwise  be  unlawful.    A  voyage  from  Mich- 


: 


2a 

igan  to  New  York  in  a  Canadian  bottom  would  not  be  law- 
ful, but  a  voyage  from  ChicF'ifo  to  Port  Sarnia,  Windsor  or 
Port  Colbourn  on  lakes  Huron  and  Erie,  and  again  from 
Hamilton  or  Port  Dalhousio  on  Lake  Ontario  to  a  New  York 
port,  would  be  lawful,  though  the  identical  goods  may  have 
constituted  the  freight  for  both  voyages,  having  passed 
from  the  upper  to  the  lower  lakes  by  a  railway.  The  same 
license  or  latitude  Avould  be  extended  to  an  American  bot- 
tom if  similar  cases  should  occur,  which,  from  the  nature  of 
the  trade  are  not  so  frequent. 

Prom  the  tenor  of  Mr.  Hatch's  argument,  the  impression 
is  left  on  the  general  reader,  that  this  is  a  violation  of  the 
spirit  of  the  Treaty,  whereas,  it  is  a  mutual  relaxation  of 
coasting  restrictions,  a  violation  of  the  spirit  of  the  British 
navigation  laws,  a  remnant  of  barbarism  two  hundred  years 
old, — a  remnant  which  it  is  believed  every  commercial  man 
on  either  side  of  the  lakes  would  be  glad  to  see  abolished  ; 
and  it  is  a  subject  of  regret  that  the  treaty  did  not  abolish 
this  troublesome  restriction,  at  least  between  us  and  British 
North  America. 

The  growth  and  magnitude  of  our  trade  with  these  Pro- 
vinces, is  so  well  known  that  it  is  not  deemed  necessary  to 
load  this  Report  with  figures  and  statistics.  We  only  sub- 
join the  aggregate  of  this  trade  at  three  distinct  and  well 
defined  periods  in  its  history.  The  first,  1830,  when  the 
British  navigation  and  our  retaliatory  laws  were  in  full  ope- 
ration. The  second,  1840,  when  a  relaxation  of  these  mea- 
sures, produced  by  Mr.  McLane's  negotiations,  had  operated 
for  ten  years  :  and  the  third,  in  1865,  when  the  debenture 
law  had  been  in  operation  nine,  and  the  Treaty  of  Reci- 
procity two  years  : 

1890,  Importa  from  British  North  American  Pruvineci ,|  mo  30S 

"    ExportB  to  wme 3,T86l8IS 

ToUl $4,48e,«T« 

1840,  Importi |2,00T«r«r 

"    Exports , 6,098,260 

ToUl .T";..|a,10)»01T 


if, 


;«.« ) 


II?,! 


m 
in 

m 
ill 


24 

lS85,  Imports  from  Canad«, $18,182,314 

"  "        "     other  British  North  American  Provinces 2,954,420 

Total  imports $16,186,784 

"     lixporta  to  Canailn 18,720,844 

"  ilo.    other  British  North  American  Provinces 9,036,676 

Total  exports $27,806,020 

Imports  and  exports  totixl $42,942,764 

It  will  be  perceived  that  the  umount  of  Exports  over 
Imports,  are  sufficient  to  satify  those  who  deem  the  balance 
of  trade  an  important  element  in  commercial  exchanges. 

The  discussion  of  canal  and  railroad  rivalry,  and  the 
debenture  and  coasting  laws,  does  not  belong  to  our  subject, 
but  has  been  forced  upon  us  by  Mr.  Hatch,  who  has  pressed 
them  into  liis  service  in  his  crusade  against  the  Treaty. 

REVENUE. 

On  the  loss  of  revenue  by  the  Treaty,  Mr.  Hatch  has 
discanted  largely,  has  taxed  his  imagination  to  swell  it  to  a 
fabulous  amount ;  he  has,  by  a  refinement  of  cruelty,  tanta- 
lized as  by  parading  the  millions  we  might  have  pocketed 
if  we  had  made  the  free  goods  pay  duty,  millions  which  we 
could,  by  no  possible  scheme,  ever  touch.  The  truth  is,  the 
little  revenue  we  did  enjoy  before  the  Treaty  would,  under 
augmented  duties  and  multiplied  restrictions,  have  dwindled 
to  a  mere  bagatelle. 

We  have  shown  incidentally,  that  the  small  loss  of  reve- 
nue to  tho  federal  government  on  mineral  and  forest  pro- 
ducts, has  been  restored  many  fold  to  the  frontier  States  ; 
that  products  of  the  soil  in  transitue  would  escape  taxation 
under  our  debenture  law.  If  New  England  could  be  made 
to  yield  to  the  federal  treasury  every  fifth  loaf  of  her  Cana- 
da bread,  and  every  fifth  bushel  of  her  Nova  Scotia  coal,  it 
would  not  prove  a  financial  achievement  to  excite  much 
exultation.  It  is  true,  as  Mr.  Hatch  avers,  we  have  nu' 
merou;'  Custom  Houses  on  the  frontier,  and  he  might  have 
added  on  the  seaboard  also,  attended  with  heavy  expenses, 
and  yielding  little  or  no  revenue.    This  is  incident  to  our 


If 


w. 


.iiir,t 


25 

revenue  system  ;  one  oflice  collects  revenue  from  the  hon- 
est importer,  while  ten  officers,  with  thei'-  cutters  and  nume- 
rous officials,  are  stationed  as  sentinels,  not  to  collect,  but 
to  protect  revenue  by  guarding  against  fraudulent  importa- 
tions. 

"We  know  of  no  other  remedy  for  this  evil  on  this  fron- 
tier, than  the  adoption  of  the  German  Zolvarein,  which  is 
said  to  be  operating  over  a  population  of  more  than  thirty 
millions.  It  is,  in  eilect,  like  collecting  the  revenues  of  the 
lake  frontier  at  Quebec  and  Portland,  and  distributing  them 
per  capita  over  the  whole  region  ;  abolishing  Custom  Houses 
bv  the  hundred,  and  disbanding  armies  of  public  functiona- 
ries. Some  of  the  most  enlightened  Statesmen  of  Canada 
advocate  this  reform. 

If  our  exposition  of  the  terms  and  working  of  the  Treaty 
is  a  f  lithfiil  one,  it  proves  that  there  has  been  no  infraction 
of  it,  tint  its  benefits  have  proved  reciprocal,  that  the 
unfriendly,  and,  as  we  believe,  unwise  legislation  of  Canada, 
has  well  nigh  proved  abortive,  and  will  probably  work  its 
own  cure.  We  would  remove  all  coasting  restrictions  by 
legislation  or  by  treaty.  After  this,  if  the  contracting  par- 
ties can  devise  other  and  better  means  of  carrying  on  their 
Governments  than  through  the  Custom  House,  then  a  sys- 
tem of  pen'oct  freedom  and  reciprocity  of  trade  may  be 
inaugurated  ;  then  British  North  America  will  yield  to  us 
ail  the  benefits  of  Federal  States,  without  the  tax  and  bur- 
then of  their  Government. 

Widely  different  arc  the  results  of  Mr.  Hatch's  labors  ;  he 
finds  a  broken  Treaty,  conferring  great  benefits  on  one  party, 
and  infiicting  great  injuries  upon  the  other.  In  his  zeal  to 
make  out  a  case,  he  has  involved  himself  in  numerous 
absurdities  and  contradictions.  On  the  one  hand  he  alarms 
us  by  an  appalling  conspiracy  to  monopolize  the  lake  trade? 
ivnd  turn  all  through  the  St.  Lawrence  ;  on  the  other,  scouts 


mmi 


n^gRHmoRi 


18?' 

i 

i 


III 


2e 


I  ■■ 


this  navigation  as  worthless,  and  says  Canada  sends  to  our 
markets  six  times  as  much  breadstuifs  as  to  the  British, 
through  this  protected  channel.  He  abuses  Canada  for 
"  taxing  the  products  of  our  industry,"  which  means,  when 
explained,  for  taxing  herself  when  she  consumes  our  fabrics, 
and  still  more,  when  she  refuses  to  take  thorn,  and  fabri- 
cates for  herself.  He  berates  her  for  overwhelming  us  and 
our  markets  with  her  products,  and  still  more  when  she 
withholds  and  attempts  to  send  them  down  the  St.  Law- 
rence, and  that,  too,  by  the  gratuitous  use  of  her  locks.  He 
complains  that  Canada  West  is  obliged,  by  Provincial  dis- 
criminating and  specific  duties,  to  import  her  tropical  and 
other  products  through  the  St.  Lawrence,  by  a  circuit  of  a 
thousand  miles,  and  at  the  same  time  proposes  to  withhold 
our  debenture  facilities,  by  the  operation  of  Avhich  she  can 
escape  this  imposition  and  avoid  this  circuitous  voyage.  It 
would  seem  his  commission  does  not  restrict  him  to  the 
exposure  of  abuses,  but  comprehends  their  cure  also.  For 
this  purpose  he  would  repeal  the  Debenture  Laws,  enforce 
the  coasting  restrictions,  re-impose  duties  on  the  list  of  free 
goods,  and  that,  too,  perhaps  through  the  agency  of  the 
Secretary  of  the  Treasury,  (as  "  a  Treaty  broken  is  a  Treaty 
no  longer,")  without  waiting  the  ten  years  prescribed  by 
the  Treaty,  or  the  action  of  the  Treaty-making  power.  He 
would  retrace  the  path  of  commercial  reform,  go  back  a 
hundred  years,  to  the  age  of  restriction,  retaliation  and  non- 
intercourse,  when  two  ships  of  different  national  character 
were  required  to  perform  the  work  of  one,  thus  doubling  the 
labor  and  cost  of  exchanging  commodities. 

ALVIN  BRONSON,  Chairman.'^ 


i 


'»■■ 


!• 


Oswego,  Nov.  1st,  1860. 


